TTK Prestige - BUY - Tamil Nadu revives in Jul-Aug - Ambit

TTK Prestige's sales growth in Tamil Nadu, according to our recent channel checks, revived to 15-20% YoY due to a strong and early monsoon and reduction in power cuts during July-August. Non-south sales growth momentum remains strong at 35-40% YoY along with a substantial reduction in credit outstanding with dealers to ~20-25 days from ~40 days a year ago. With the long-term value drivers intact, we expect revenue growth of 21% YoY in FY14 and 23% revenue CAGR in FY13-18. Hawkins' recent update in the AGM around the new intended product launches is a risk worth watching out for in 2HFY14. We reiterate our BUY stance with a target price of Rs4,067.

Source : Equity Bulls

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